You Plan to Analyze the Value of a Potential Investment

question 149

Multiple Choice

You plan to analyze the value of a potential investment by calculating the sum of the present values of its expected cash flows.Which of the following would lower the calculated value of the investment?

• A) The discount rate decreases.
• B) The cash flows are in the form of a deferred annuity, and they total to $100,000.You learn that the annuity lasts for only 5 rather than 10 years, hence that each payment is for $20,000 rather than for $10,000.
• C) The discount rate increases.
• D) The riskiness of the investment's cash flows decreases.
• E) The total amount of cash flows remains the same, but more of the cash flows are received in the earlier years and less are received in the later years.

---

Definitions:

Appointment Time

The specific time scheduled for a meeting, consultation, or medical treatment between a patient and a healthcare professional.

Communication

The process of sharing information, ideas, or feelings between individuals or groups, typically involving a sender, a message, and a recipient.

Soft Skill

Personal attributes that enable individuals to interact effectively and harmoniously with other people.

Medical Records

Documented information pertaining to a patient's medical history, treatments, and health conditions, maintained for the purpose of guiding future care.